inheriting part of a parent's home..how will it affect aid?

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<p>Very good advice, as even the smallest details can have unintended consequences. It can be hard to play “what if” and try to think through all the possible scenarios, but it’s an exercise that a good attorney should be familiar with.</p>

<p>Thumper, it’s too bad that your family trust was set up so as not to give future heirs any easy option as to whether or not to participate. I would think that once the number of beneficiaries multiplies, there will be some who will have no interest in the property and yet will not have an easy way to decline their share.</p>

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<p>Could be. Technically, we don’t have those in California to my knowledge. However, I have seen revocable deeds of gift which purport to transfer real property to the children, say, but reserve in the grantor a right of revocation during lifetime, making it a delayed, incomplete gift and, in essence, a transfer at death when the right of revocation expires. I have never seen that kind of instrument used in a Medicaid planning situation, however, which is what I thought was happening here based on OP’s statement that mom was going into a home.</p>

<p>Thinking about this overnight brought me another idea for you. Instead of the will giving the house to a number of people, it should direct the trustee to put the house on the market within xxx months of death (to give the person there time to move) and for the proceeds to be split.</p>

<p>There is a terrific book called “Saving the Family Cottage”. It actually discusses options for dealing with real estate one wishes to pass on to heirs. I personally think it is a must read for anyone with this issue. Lots of options are presented.</p>

<p>As a trusts and estates attorney, I deal with this issue all the time. Clients are always saying “we want to keep this property in the family forever after we die.” I don’t care what system you come up with – trust, partnership, LLC, co-tenancy agreement, etc. – the fact is that shared ownership of a single property among multiple family members rarely works for one generation, let alone two or three. It is doomed to failure. These days people are spread out all over the country. Eventually the cousin who lives in Miami is going to get fed up and ask “What good is that cabin at Lake Tahoe to me? I’m tired of paying my share of the upkeep. I’d rather sell it and get my cash out.” I usually try to talk people out of this silly notion of family legacy real estate. It’s just a house or a piece of dirt for crying out loud. It’s an asset. Don’t get emotionally attached. In 100 years, no one will even remember who you are or give a crap about the family farm you tried so hard to save and pass down.</p>